New affordable housing model will cut apartment prices, says minister

Hina - Physical Planning, Construction and State Assets Minister Branko Bačić laid the foundation stone on Monday for a subsidised housing building in Virovitica, saying the government aimed to further reduce apartment prices through a new affordable housing model.

The investment is worth €6 million. The building will contain 39 apartments with a total floor area of 3,150 square metres and 39 parking spaces, with construction expected to take 420 days.

Bačić said that under Croatia’s existing subsidised housing programme, known as POS, more than 9,100 apartments had been built over the past 24 years.

“The price per square metre in this project will amount to €2,104. However, since buyers will be entitled to a subsidy covering 50% of the VAT paid, the final price will be around €1,900 per square metre,” he said.

From next year, Croatia plans to introduce a new affordable housing model based on the National Housing Policy Plan, under which the government aims to further reduce apartment prices. “If the new affordable housing law were already in force, the price would be around €1,700 per square metre instead of €1,900,” Bačić said.

“We want affordable housing to become part of the city and everyday life, not ghettoised areas separated from amenities and infrastructure,” he added.

Virovitica Mayor Ivica Kirin said around 400 apartments were currently being built or prepared in the city, of which 80% had already been reserved. “The foundations for a young family are financial security and housing. Once you solve those two issues, you have a family that stays living in this area,” he said.

Igor Andrović, head of Virovitica-Podravina County, described the project as important for demographic renewal and retaining young people in rural areas. “The price of new-build apartments in Virovitica today is around €2,800 per square metre, so projects like this are of great value for young families,” he said.

During his visit to Virovitica, Bačić also toured the General Hospital, where an €18.5 million energy renovation project is nearing completion.

Hospital director Dinko Blažević said the project should deliver at least 30% savings in total energy consumption and more than 50% savings in heating energy use.

Bačić also visited the Technical School, where an energy renovation project worth just over €1.13 million is under way. Of that amount, €902,600 was secured through the Recovery and Resilience Facility under the Next Generation EU programme.

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